BB&T reports 3rd quarter EPS totaling $0.37; Adjusted EPS of $0.70 excluding tax adjustment

BB&T reports 3rd quarter EPS totaling $0.37; Adjusted EPS of $0.70 excluding 
tax adjustment 
WINSTON-SALEM, N.C., Oct. 17, 2013 /CNW/ - BB&T Corporation (NYSE: BBT) today 
reported third quarter 2013 net income available to common shareholders of 
$268 million, or $0.37 per diluted share. Net income available to common 
shareholders and earnings per share include the impact of a previously 
announced $235 million tax adjustment. Excluding this adjustment, BB&T's third 
quarter earnings totaled $503 million, or $0.70 per diluted share. 
Excluding the tax adjustment, net income available to common shareholders 
increased 7.2% and earnings per diluted share increased 6.1% compared with the 
third quarter of 2012. 
Third quarter earnings exclusive of the tax adjustment produced an annualized 
return on average assets of 1.20% and an annualized return on average common 
shareholders' equity of 10.22%. 
"BB&T posted solid results in a challenging environment this quarter," said 
Chairman and Chief Executive Officer Kelly S. King. "Our 7% growth in adjusted 
earnings was driven by a substantial improvement in credit quality to the best 
levels in almost six years. In addition, we maintained a stable net interest 
margin and reduced expenses compared with last quarter. We are also pleased to 
achieve 3% loan growth in a sluggish economic environment. 
"Credit quality improvement accelerated the last two quarters and credit 
metrics are very strong," said King. "Nonperforming assets declined 9% to 
their lowest levels as a percent of total assets since 2007. In addition, net 
loan charge-offs decreased 34% to 0.49% of average loans and leases, down from 
0.75% last quarter, excluding covered loans. Net charge-offs have declined by 
half since the first quarter this year, driving a decrease in our loan loss 
provision and other credit-related costs. 
"Average loans grew 3% on an annualized basis compared with last quarter, led 
by strong performances in other lending subsidiaries, up 23%; sales finance 
automobile lending, up 22%; and direct retail lending, up 4%. We are pleased 
with this performance given the slower economic growth this quarter. Early in 
the fourth quarter, we sold a consumer lending subsidiary, which will allow us 
to optimize our loan mix in the short-term and redeploy the capital over the 
long-term. 
"While average total deposits were lower this quarter, noninterest-bearing 
deposits grew 8% annualized consistent with our mix improvement goals," King 
said. "We are also pleased with the results of the FDIC deposit market share 
report, where we maintained or grew market share rank in nine states in our 
footprint. 
"We are working to reduce noninterest expenses and improve efficiency. Third 
quarter expenses declined 7% on an annualized basis compared to last quarter, 
led by lower personnel and restructuring costs. Professional services expenses 
related to systems and project-related costs remained elevated this quarter, 
but we are confident these costs and total expenses will decline in coming 
quarters," said King. 
For the first nine months of 2013, BB&T reported net income available to 
common shareholders of $1.0 billion, which includes the impact of $516 million 
in adjustments related primarily to tax-related litigation. Earnings per 
diluted common share, including the tax adjustments, totaled $1.44 for the 
first nine months of 2013. 
Third Quarter 2013 Performance Highlights 


    --  Average total loans and leases held for investment increased
        3.0% on an annualized basis compared to the second quarter of
        2013
        o Average C&I loans increased 0.9%; 2.1% excluding mortgage
          warehouse lending
        o Average sales finance loans increased 22.0%
        o Average loans in the other lending subsidiaries group
          increased 23.3%
        o Average direct retail lending increased 4.4%
        o Average revolving credit increased 7.0%
        o Early in 4Q13, BB&T sold a consumer lending subsidiary with
          approximately $500 million in loans
    --  Taxable equivalent revenues were $2.4 billion for the third
        quarter
        o Net interest margin was 3.68%, down two basis points compared
          with last quarter
        o Insurance income decreased $71 million, driven by seasonal
          factors
        o Mortgage banking income was down $51 million as margins and
          production declined due to reduced demand
    --  Asset quality results improved significantly
        o Nonperforming assets decreased $114 million, or 8.9%,
          excluding covered assets
        o Net charge-offs, excluding covered, were 0.49% of average
          loans for the quarter, down from 0.75% in the second quarter
          of 2013 and 1.08% in the third quarter of 2012
        o Net charge-offs, excluding covered, decreased 34.0% compared
          with the second quarter
        o Allowance for loan losses (excluding covered loans) as a
          percentage of nonperforming loans HFI increased from 1.55% in
          the second quarter of 2013 to 1.66% in the third quarter of
          2013
    --  Noninterest expense decreased an annualized 6.6% compared with
        the second quarter of 2013
        o Personnel expense declined $39 million primarily due to lower
          production-related compensation and other post-employment
          benefits expenses
        o Professional services increased $13 million primarily due to
          legal and systems and project-related expenses
        o Merger-related and restructuring expenses declined $23
          million
    --  Average noninterest-bearing deposits increased $658 million, or
        7.8% on an annualized linked quarter basis
        o Average interest-bearing deposit costs fell one basis point
          to 0.31% this quarter
    --  Capital levels improved across the board
        o Tangible common equity to tangible assets was 6.9%
        o Tier 1 common equity to risk-weighted assets was 9.4%
        o Tier 1 risk-based capital was 11.3%
        o Leverage capital remained strong at 9.0%
        o Total capital was 13.9%

Earnings presentation and Quarterly Performance Summary

To listen to BB&T's live third quarter 2013 earnings conference call at 8 a.m. 
(ET) today, please call 888-632-5009 and enter the participant code 5184622. A 
presentation will be used during the earnings conference call and is available 
on our website at www.bbt.com. Replays of the conference call will be 
available by dialing 888-203-1112 (access code 4313363) until November 17, 
2013.

The presentation, including an appendix reconciling non-GAAP disclosures, is 
available at www.bbt.com/Investor-Presentations.

BB&T's third quarter 2013 Quarterly Performance Summary, which contains 
detailed financial schedules, is available on BB&T's website at 
www.bbt.com/financials.html.

About BB&T

As of September 30, 2013, BB&T is one of the largest financial services 
holding companies in the U.S. with $181.1 billion in assets and market 
capitalization of $23.8 billion. Based in Winston-Salem, N.C., the company 
operates 1,824 financial centers in 12 states and Washington, D.C., and offers 
a full range of consumer and commercial banking, securities brokerage, asset 
management, mortgage and insurance products and services. A Fortune 500 
company, BB&T is consistently recognized for outstanding client satisfaction 
by J.D. Power and Associates, the U.S. Small Business Administration, 
Greenwich Associates and others. More information about BB&T and its full line 
of products and services is available at www.bbt.com.

Capital ratios are preliminary. Credit quality data excludes covered and 
government guaranteed loans where applicable.

This news release contains financial information and performance measures 
determined by methods other than in accordance with accounting principles 
generally accepted in the United States of America ("GAAP"). BB&T's management 
uses these "non-GAAP" measures in their analysis of the Corporation's 
performance and the efficiency of its operations. Management believes that 
these non-GAAP measures provide a greater understanding of ongoing operations 
and enhance comparability of results with prior periods as well as 
demonstrating the effects of significant gains and charges in the current 
period. The company believes that a meaningful analysis of its financial 
performance requires an understanding of the factors underlying that 
performance. BB&T's management believes that investors may use these non-GAAP 
financial measures to analyze financial performance without the impact of 
unusual items that may obscure trends in the company's underlying performance. 
These disclosures should not be viewed as a substitute for financial measures 
determined in accordance with GAAP, nor are they necessarily comparable to 
non-GAAP performance measures that may be presented by other companies. Below 
is a listing of the types of non-GAAP measures used in this news release:
    --  Tangible common equity, Tier 1 common equity and related ratios
        are non-GAAP measures. The Basel III common equity Tier I ratio
        reflects management's interpretation of the regulatory
        requirements, which is subject to change. BB&T's management
        uses these measures to assess the quality of capital and
        believes that investors may find them useful in their analysis
        of the Corporation.
    --  Asset quality ratios have been adjusted to remove the impact of
        acquired loans and foreclosed property covered by FDIC loss
        sharing agreements from the numerator and denominator of these
        ratios. Management believes that their inclusion may result in
        distortion of these ratios, such that they might not be
        comparable to other periods presented or to other portfolios
        that were not impacted by purchase accounting.
    --  Fee income and efficiency ratios are non-GAAP in that they
        exclude securities gains (losses), foreclosed property expense,
        amortization of intangible assets, merger-related and
        restructuring charges, the impact of FDIC loss share accounting
        and other selected items. BB&T's management uses these measures
        in their analysis of the Corporation's performance. BB&T's
        management believe these measures provide a greater
        understanding of ongoing operations and enhance comparability
        of results with prior periods, as well as demonstrating the
        effects of significant gains and charges.
    --  Return on average tangible common shareholders' equity is a
        non-GAAP measure that calculates the return on average common
        shareholders' equity without the impact of intangible assets
        and their related amortization. This measure is useful for
        evaluating the performance of a business consistently, whether
        acquired or developed internally.
    --  Core net interest margin is a non-GAAP measure that adjusts net
        interest margin to exclude the impact of interest income and
        funding costs associated with loans and securities acquired in
        the Colonial acquisition. BB&T's management believes that the
        exclusion of the generally higher yielding assets acquired in
        the Colonial acquisition from the calculation of net interest
        margin provides investors with useful information related to
        the relative performance of the remainder of BB&T's earning
        assets.
    --  Net income available to common shareholders, diluted EPS,
        return on average assets, return on average risk-weighted
        assets, return on average common shareholders' equity and
        return on average tangible common shareholders' equity have
        been adjusted to exclude the impact of the $235 million tax
        adjustment that was recorded in the third quarter of 2013. BB&T
        management believes these adjustments increase comparability of
        period-to-period results and uses these measures to assess
        performance and believes investors may find them useful in
        their analysis of the Corporation.

A reconciliation of these non-GAAP measures to the most directly comparable 
GAAP measure is included on the Investor Relations section of BB&T's website 
and in BB&T's Third Quarter 2013 Quarterly Performance Summary, which is 
available on BB&T's website at www.bbt.com/financials.html.

This news release contains certain forward-looking statements as defined in 
the Private Securities Litigation Reform Act of 1995. These statements may 
address issues that involve significant risks, uncertainties, estimates and 
assumptions made by management. Actual results may differ materially from 
current projections. Please refer to BB&T's filings with the Securities and 
Exchange Commission for a summary of important factors that may affect BB&T's 
forward-looking statements. BB&T undertakes no obligation to revise these 
statements following the date of this news release.



SOURCE  BB&T Corporation 
ANALYSTS: Alan Greer, Executive Vice President, Investor Relations, (336) 
733-3021; or Tamera Gjesdal, Senior Vice President, Investor Relations, (336) 
733-3058; or MEDIA: David White, Vice President, Corporate Communications, 
(336) 733-1471 
http://www.bbt.com 
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CO: BB&T Corporation
ST: North Carolina
NI: FIN ERN  
-0- Oct/17/2013 09:45 GMT
 
 
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